City retiree benefit proposal could head to bargaining table

A controversial proposal to trim city workers' retirement benefits plan could be moving to the bargaining table at the end of this year.

Sarnia city council is now being advised by city management to allow the contentious issue to be debated as part of upcoming closed-door contract negotiations, according to a report prepared for Monday's city council meeting.

Four of the city's five worker unions are due for contract negotiations at the end of 2016.

The proposal calls for the creation of a cap up to $3,500 on health-care spending for early city retirees who have clocked at least 25 years with the municipality. The city currently spends $7,000 per retiree for benefits.

City unions have been rallying against council making a decision on the proposal because they've said the subject should be part of contract negotiations.

In an email exchange contained in the report, national representative Tim Fowler said the Canadian Union of Public Employees and its three locals representing city workers are prepared to issue an estoppel and take it to the Ontario Labour Relations Board if changes are made mid-contract to retirement benefits.

While city management argues post-retirement benefits aren't covered under the unions' collective agreements, the city could benefit from more meetings with union officials to discuss benefits ahead of contract negotiations, city manager Marg Misek-Evans wrote in a report released Friday.

“Nonetheless, to promote good relations, we respect the unions' request for the matter to be referred to the time of collective bargaining in order that the whole benefits matter may be considered concurrently and to provide additional time for information sharing and understanding,” the report states.

City council had been expected to make a decision on the proposal Monday after a series of delays to allow for staff input at the end of last year.

“I feel a little bit like the character in Dallas who wakes up and finds that this whole thing has been a dream for three months,” Sarnia Mayor Mike Bradley said Friday.

“This wasn't necessary, and what we've always done is council gives direction to staff on negotiations, what the total package should be – benefits and salaries – and that's brought back to council after negotiations. That's the way you do it and that's the way you do it in any organization.”

In addition to post-retirement benefits, city council has also requested information on the possible introduction of benefit co-pays for all city workers. A staff report is expected back by March.

For city Coun. Bev MacDougall, who has been advocating for benefit reform, she welcomed the potential delay to allow for more information gathering.

“As I reviewed the report (Thursday) night, I see the post-retirement benefits and the benefits issues really do converge,” she said.

All of the city staff feedback contained in Friday's report support changes to post-retirement benefits in an effort to help taxpayers.

“I found it interesting to read the feedback from staff and the public,” MacDougall said. “I believe in terms of any community discussions from local media reporting, I'm hearing back from the electorate that they believe that council is on a good path going down this road.”

County officials have recently become part of the discussions with the city management team because MacDougall has submitted a motion for county council to consider a similar benefits review this year.

City and county officials plan to share data and information on benefits as they both prepare for upcoming contract negotiations with staff.

Three of the county's 11 bargaining groups are up for contract negotiations at the end of 2016.

“My intention as city councillor, as county councillor and as current sitting warden is to act in the interest of the federation of Lambton County and my colleagues here, and the City of Sarnia and our $17-million unfunded liability for post-retirement benefits but also towards modernization of our benefit plans that is reflective of the times,” MacDougall said.